Question:
At the end of 2003, vandals destroyed your financial records. Fortunately, the controller had kept certain statistical data related to the income statement, as follows:
1) Cost of goods sold was $2,000,000.
2) Administrative expenses were 20% of the cost of sales but only 10% of sales.
3) Selling expenses were 150% of administrative expenses.
4) Bonds payable were $1,000,000, with an average interest rate of 11%.
5) The tax rate was 48%.
6) 50,000 shares of common stock were outstanding for the entire year.
Required:
From the information given, reconstruct a multiple-step income statement for the year. Include earnings per share.